AGM Statement
17 February 2011
easyJet Annual General Meeting 2011 Chairman's Statement
Speaking at the Company's Annual General Meeting in Luton today, Sir Michael Rake, Chairman of easyJet plc, said:
"In the past year easyJet delivered a considerably improved financial result as pre-tax profit increased by £99 million to £154 million despite some significant challenges. External factors such as the disruption to European airspace due to the eruption of the Icelandic volcano, unprecedented levels of snow disruption and high levels of ATC industrial action have combined with some operational problems to make last year an exceptionally tough one.
Whilst it is clear from the operational issues last summer that the business had lost focus on some of the basics, the financial results last year demonstrate that easyJet continues to make progress against its goal of delivering market share growth and improving returns, thus underlining that easyJet's business model and strategy is sound.
easyJet is strongly positioned to take advantage of the continuing profitable growth opportunities in European short haul. This growth combined with a focus on delivering a Return on Capital Employed of 12% through the cycle means that easyJet is poised to continue the strong operating cash generation of the past few years. Consequently, the Board now feels that the time is right to set in place a formula to trigger a dividend payment in years when the company is profitable whilst at the same time ensuring the Company remains prudently financed with a strong, liquid balance sheet. This will ensure that shareholders are able to benefit directly from the Company's success.
The Board of easyJet acknowledges the concern expressed by some at the retention arrangements made in respect of Andy Harrison. These arrangements were a one off and agreed in unusual and difficult circumstances. The Company has now moved forward with a new Chief Executive and Chief Financial Officer.
Carolyn McCall and Chris Kennedy joined the easyJet plc Board in July of last year as Chief Executive and Chief Financial Officer respectively. Both have brought significant experience in operational roles within consumer facing businesses and will provide the Company with a leadership and focus that will ensure improved execution of the strategy going forward and a renewed focus on customers and the engagement of our people.
On 11 October 2010 we announced that easyJet, Sir Stelios Haji-Ioannou and easyGroup had agreed to a variation of the licence agreement providing for the Company's use of the easyJet brand and to remove the rights granted to Sir Stelios to appoint himself Chairman and to easyGroup to appoint Board Directors. The Board believes the revised agreement better aligns the interests of easyJet shareholders and the Licensor, and the resolution of this dispute following independent shareholder approval on 10 December 2010 has enabled the Company to move forward.
easyJet's continued strong performance is a tribute to the professionalism and commitment of all easyJet's people and the Board and I would to thank them for their efforts which are very much appreciated."
End
For further details please contact easyJet plc:
Investor:
Rachel Kentleton, Investor Relations +44 (0) 7961 754 468
Media:
Paul Moore, Communications +44 (0) 1582 525 973
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